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Showing posts with the label us tariffs

The Ripple Effect of US tariffs: Economic growth, inflation, and global trade dynamics

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[hfe_template id='11223'] [ad_1] The sharp rise in US import tariffs is expected to weigh on economic growth. However, conflicting factors make the ultimate impact on inflation uncertain. Interestingly, US TIPS have been signalling that these crosscurrents could eventually lead to disinflation. US firms not keen to reshore production It has seemed clear that Trump intends to use tariffs for multiple purposes such as to impact trade and US manufacturing, use it as a negotiation tool, and raise revenue for the US to help reduce deficit or channelize this additional revenue in personal income tax reduction. (these are the stated objectives- final outcome could be different). A survey by CNBC across 120 US companies suggests that most companies will switch to importing from countries with relatively lower tariffs (and not reshore production). Will Trump ever be able to implement reciprocal tariffs? Perhaps not Trump’s proposed reciprocal tariff plan has been postponed for 90...

Tariff pause for India offers relief, yet China’s export spillover remains a risk: Jigar Mistry

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[hfe_template id='11223'] [ad_1] As the United States imposes steep tariffs on China while pausing similar actions against other countries, including India, analysts say the immediate pressure may shift toward Chinese exports — but the ripple effects could reach India too. In an interaction with ETNow, Jigar Mistry of Buoyant Capital, outlined a more complex picture of the ongoing trade reshuffle. While India appears relatively insulated for now, he warned of potential spillovers from China’s trade displacement. "If China is not allowed to export into the US, then it will try and flood every other market that it is allowed to export to," Mistry said, pointing to historical precedent. He added, "We have seen this story play out with steel in the year 2015 to 2018 onwards, where they started supplying to the Philippines, Thailand, and the Asia-Pac region... even within India, China could start dumping a lot of material." While some market participants v...

Tariff effect, RBI MPC outcome among 9 factors that will steer D-Street this week

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[hfe_template id='11223'] [ad_1] Last week, benchmark indices Sensex and Nifty 50 dropped 2.6% each, with the Nifty closing at 22,904—slipping below the 23,000 mark amid a global sell-off triggered by US President Trump’s tariff measures and renewed fears of an economic slowdown. The broader markets also came under pressure, as the Nifty Midcap100 and Nifty Smallcap100 declined by 2% and 2.6%, respectively. IT stocks led the decline, plunging 9% on concerns of reduced US tech spending, while the Nifty Metal index tumbled 7.5% on fears of global trade disruptions. The auto and pharma sectors also registered losses of 3% each. “Nifty broke below the crucial support of 23,141 and went down to as low as 22,857. From the recent swing high of 23,869, Nifty has registered a fall of more than 1,000 points. The next support for Nifty is seen near 22,700, where the 61.8% retracement of the entire rally from 21,964 to 23,869 is placed. On the higher side, the previous support of 23...

Tesla, chip stocks Intel, Qualcomm tumble as China's retaliation stokes fears of widening trade war

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[hfe_template id='11223'] [ad_1] U.S. chip companies, banks and oil majors fell sharply on Friday after China retaliated to Trump's tariffs with steep duties, in an intensifying trade war between the world's two largest economies that cast a shadow on global growth. China slapped additional duties of 34% on U.S. goods, set to go into effect April 10. It also announced curbs on exports of some rare-earths and added several U.S. firms to its export control list and the "unreliable entities" list, which allows Beijing to take punitive action. The action followed U.S. President Donald Trump's 34% duties on imports from China announced on Wednesday, which triggered a massive market meltdown on Thursday. The latest levies were on top of the 20% tariffs on China imposed earlier this year. Investors were already fretting over potential supply chain disruptions, price hikes and demand destruction for everything from cars and smartphones to sneakers. Share...

Ahead of Market: 10 things that will decide stock market action on Tuesday

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[hfe_template id='11223'] [ad_1] The Indian market was closed on Monday for a national holiday in observance of Eid al-Fitr 2025. On Friday, the Indian benchmark indices, Sensex and Nifty, ended in the red, pressured by declines in auto and IT stocks as investor sentiment turned cautious ahead of this week's announcement of US reciprocal tariffs. However, intraday volatility persisted, driven by foreign inflows and optimism about a domestic growth recovery. The benchmark BSE Sensex declined 191.51 points, or 0.25%, to close at 77,414.92, while the broader Nifty 50 index closed at 23,519.35, down 72.60 points, or 0.31%. Here's how analysts read the market pulse: Asian markets are experiencing a new phase of consolidation as the latest U.S. tariff measures are expected to have a significant impact on major manufacturing economies, said Vinod Nair, Head of Research at Geojit Investments, adding that a rise in Japan's CPI has contributed to the prevailing weaknes...

Japan's Nikkei rises as investors weigh possible flexibility on tariffs

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[hfe_template id='11223'] [ad_1] Japan's Nikkei share average rose on Wednesday as investors held on to hopes that U.S. President Donald Trump may approach tariffs with more flexibility than previously anticipated while announcing more reciprocal levies next week. The Nikkei closed up 0.7% at 38,027.29, marking a second consecutive day of gains. It earlier rose a little more than 1% to touch a one-month intraday high of 38,220.69. The broader Topix gained 0.6% to finish at 2,812.89. Market players were leaning into a more optimistic view after Trump said on Monday automobile tariffs were coming soon but indicated that not all of his threatened levies would be imposed next week and that some countries may get breaks. All three of Wall Street's main stock indexes ended higher on Tuesday, albeit by small amounts, in a boost to investor sentiment. Live Events The direction of equities depends on U.S. tariff policies, but Rakuten Securities' chief strategist M...

European shares muted on caution ahead of US tariff deadline

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[hfe_template id='11223'] [ad_1] European shares were subdued in early trading on Wednesday, as cautious investors held out from making big bets while awaiting clarity ahead of a fresh round of U.S. tariffs set to take effect next week. The pan-European STOXX 600 index was about flat, as of 0809 GMT. Energy stocks firmed about 0.8% as oil prices touched a three-week high. Defensive sectors including healthcare and telecom were in a weak spot. Shares of MFE-MediaForEurope rose 1% after Reuters reported, citing three sources with knowledge of the matter, that the TV group controlled by Italy's Berlusconi family has called for a board meeting to review a possible bid for German peer ProSiebenSat.1. ProSieben shares firmed 3.9%. Meanwhile, latest data showed French consumer confidence unexpectedly fell in March. France's CAC 40 index was about flat. Live Events However, the STOXX 600 index is on track for its best quarter in two years, helped by hopes that a hist...

India struggles to shake off pessimism after $1.3 trillion stock market rout

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[hfe_template id='11223'] [ad_1] Global fund managers are in no rush to load up on Indian stocks even after an unprecedented losing streak has lowered equity valuations. That’s because the market is still grappling with challenges posed by an economic slowdown, profit downgrades and potential US tariffs. Traders looking for bargains within Asia are gravitating toward still-cheap Chinese equities, which are in the middle of a bull run sparked by developments in artificial intelligence. The sentiment illustrates how the highly touted stock rotation from China to India has gone into reverse as growth in the South Asian economy returns to a relatively slower pre-Covid norm amid a decline in consumption. Overseas investors have pulled almost $15 billion from local shares so far this year, putting outflows on track to surpass the record $17 billion registered in 2022. The selloff has wiped out $1.3 trillion from India’s market value. “Global investors would need to see sustain...

Asian shares in tense wait for tariff news, Bitcoin surges

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[hfe_template id='11223'] [ad_1] SYDNEY: Asian share markets dithered on Monday as the threat of imminent tariffs lurked in the background, while bitcoin surged on news it would be included in a new U.S. strategic reserve of cryptocurrencies. U.S. President Donald Trump on social media announced five digital assets he expected to include in a new reserve, including bitcoin, ether, XRP, solana and cardano. Bitcoin, the world's largest cryptocurrency by market value, shot up more than 11% to $94,110, while ether, the second-largest cryptocurrency, climbed 14% to $2,528. MSCI's broadest index of Asia-Pacific shares outside Japan was flat, though Japan's Nikkei rose 1.1%, helped by a softer yen. S&P 500 futures and Nasdaq futures were both up 0.1%, having staged a late rally on Friday after a week of heavy losses. Geopolitical uncertainty lingered as European leaders agreed to draw up a Ukraine peace plan to take to the United States, following President Vol...

Tariffs to drive global stock markets in volatile 2025: JPMorgan

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[hfe_template id='11223'] [ad_1] Global financial-market turbulence this week sparked by a series of US tariff announcements looks like just the beginning of a volatile year, according to a JPMorgan Chase & Co. electronic trading survey. Inflation and tariffs will have the biggest impact on markets in 2025, followed by geopolitical tension, according to the annual trading poll. Some 41% surveyed highlighted volatility as their biggest anticipated daily trading challenge, up from 28% last year. “What sets this year apart is the somewhat unexpected timing of volatility,” said Eddie Wen, JPMorgan’s global head of digital markets, in an interview. “Markets are reacting to news headlines in surprising ways, and I expect this trend to continue in the current climate.” Traders are on tenterhooks given the lack of clarity over what impact tariffs will have on different asset classes. The annual survey of over 4,200 institutional traders was conducted last month before Presid...